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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
Lessee
The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery.
Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $16 million and $17 million and for the year ended December 31, 2020 and 2019, respectively.
For the year ended December 31, 2020 and 2019, the Company incurred operating lease expenses of $148 million and $162 million, respectively.
At December 31, 2020 and 2019, the Company has recorded approximately $454 million and $450 million of a right-of-use asset, respectively, and $453 million and $449 million of lease liability included in Other Assets and Other Liabilities, respectively. At December 31, 2020 and 2019 the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.6 years and 3.0%, and 6.9 years and 3.4%, respectively.
During the year ended December 31, 2020 and 2019, leased assets obtained in exchange for operating lease obligations were $131 million and $117 million, respectively. During the year ended December 31, 2020 and 2019, operating cash outflow for amounts included in the measurement of operating lease obligations was $148 million and $162 million, respectively.

Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:
Operating Leases($ million)
2021$133 
202298 
202369 
202451 
202539 
2026 and thereafter108 
Total future minimum lease payments$498 
Less: Interest(45)
Total$453 
Lessor
The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately.
A summary of equipment on operating leases as of December 31, 2020, and 2019 is as follows:
20202019
(in millions)
Equipment on operating leases$2,442 $2,212 
Accumulated depreciation(464)(355)
Net equipment on operating leases$1,978 $1,857 
Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $266 million, $250 million and $256 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
Amount
(in millions)
2021$272 
2022173 
202390 
202434 
202512
2026 and thereafter1 
Total undiscounted lease payments$582 
Leases Leases
Lessee
The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery.
Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $16 million and $17 million and for the year ended December 31, 2020 and 2019, respectively.
For the year ended December 31, 2020 and 2019, the Company incurred operating lease expenses of $148 million and $162 million, respectively.
At December 31, 2020 and 2019, the Company has recorded approximately $454 million and $450 million of a right-of-use asset, respectively, and $453 million and $449 million of lease liability included in Other Assets and Other Liabilities, respectively. At December 31, 2020 and 2019 the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.6 years and 3.0%, and 6.9 years and 3.4%, respectively.
During the year ended December 31, 2020 and 2019, leased assets obtained in exchange for operating lease obligations were $131 million and $117 million, respectively. During the year ended December 31, 2020 and 2019, operating cash outflow for amounts included in the measurement of operating lease obligations was $148 million and $162 million, respectively.

Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:
Operating Leases($ million)
2021$133 
202298 
202369 
202451 
202539 
2026 and thereafter108 
Total future minimum lease payments$498 
Less: Interest(45)
Total$453 
Lessor
The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately.
A summary of equipment on operating leases as of December 31, 2020, and 2019 is as follows:
20202019
(in millions)
Equipment on operating leases$2,442 $2,212 
Accumulated depreciation(464)(355)
Net equipment on operating leases$1,978 $1,857 
Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $266 million, $250 million and $256 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
Amount
(in millions)
2021$272 
2022173 
202390 
202434 
202512
2026 and thereafter1 
Total undiscounted lease payments$582 
Leases Leases
Lessee
The Company has mainly operating lease contracts for buildings, plant and machinery, vehicles, IT equipment and machinery.
Leases with a term of 12 months or less are not recorded in the balance sheet. For the leases the Company recognized, on a straight-line basis over the lease term, lease expense of $16 million and $17 million and for the year ended December 31, 2020 and 2019, respectively.
For the year ended December 31, 2020 and 2019, the Company incurred operating lease expenses of $148 million and $162 million, respectively.
At December 31, 2020 and 2019, the Company has recorded approximately $454 million and $450 million of a right-of-use asset, respectively, and $453 million and $449 million of lease liability included in Other Assets and Other Liabilities, respectively. At December 31, 2020 and 2019 the weighted average remaining lease term (calculated on the basis of the remaining lease term and the lease liability balance for each lease) and the weighted average discount rate for operating leases were 6.6 years and 3.0%, and 6.9 years and 3.4%, respectively.
During the year ended December 31, 2020 and 2019, leased assets obtained in exchange for operating lease obligations were $131 million and $117 million, respectively. During the year ended December 31, 2020 and 2019, operating cash outflow for amounts included in the measurement of operating lease obligations was $148 million and $162 million, respectively.

Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:
Operating Leases($ million)
2021$133 
202298 
202369 
202451 
202539 
2026 and thereafter108 
Total future minimum lease payments$498 
Less: Interest(45)
Total$453 
Lessor
The Company, primarily through its Financial Services segment, leases equipment and vehicles to retail customers under operating leases. Our leases typically have terms of 3 to 5 years with options available for the lessee to purchase the equipment at the lease term date. Revenue for non-lease components are accounted for separately.
A summary of equipment on operating leases as of December 31, 2020, and 2019 is as follows:
20202019
(in millions)
Equipment on operating leases$2,442 $2,212 
Accumulated depreciation(464)(355)
Net equipment on operating leases$1,978 $1,857 
Depreciation expense on equipment on operating leases is recorded in "Other, net" and amounted to $266 million, $250 million and $256 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The following table sets out a maturity analysis of operating lease payments, showing the undiscounted lease payments to be received after the reporting date:
Amount
(in millions)
2021$272 
2022173 
202390 
202434 
202512
2026 and thereafter1 
Total undiscounted lease payments$582